Andover Company makes weather balloons. The company controller wanted to calculate the fixed and variable costs associated with the maintenance costs incurred by the factory. Data for the past six months were collected.

Month

January

Maintence cost : $$10,120$

Machine hours: $526$

February

Maintenance cost: $9,560$

Machine hours: $389$

March

Maintenance cost: $9,712$

Machine hours: $412$

April

Maintenance cost: $10,460$

Machine hours: $569$

May

Maintenance cost: $10,226$

Machine hours: $541$

June

Maintenance Cost: $9,686$

Machine hours: $399$

Required:

A$.$ Using the high$-$low method, calculate the fixed cost of maintenance and the variable rate per machine hour. Round the total fixed cost to the nearest dollar, and round the variable cost per machine hour to two decimal places.

B$.$ Using the high$-$low method, construct the cost formula for the total maintenance cost.

C$.$ Calculate the budgeted cost for maintenance assuming that $485$ hours are worked next month. Round the answer to the nearest dollar.